Toronto-Dominion Bank (TD.TO) on Thursday posted higher quarterly profit, lifted by strong performance in its Canadian Personal and Commercial Banking business.

The lender’s adjusted net income was C$4.2 billion ($3.09 billion), or C$2.23 per share, in the three months ended Jan. 31, compared with C$3.8 billion, or C$2.08 per share, a year earlier.

Canada’s second-largest lender reported an overall net profit of C$1.6 billion, or C$0.82 a share, down from C$3.7 billion, or C$2.02 per share, a year ago.

The Canadian Personal and Commercial Banking business’ net income grew 7% to $1.7 billion, lifted by strong volume growth in account openings and credit card activations during the quarter.

The results come as economic forecasts turn gloomy, heightening expectations of a recession and prompting lenders to set aside more capital in case customers fall behind on their loan payments.

Earlier this week, the lender agreed to pay $1.2 billion to resolve litigation by former Allen Stanford investors who accused them of contributing to the imprisoned financier’s massive Ponzi scheme.